Harley Davidson was founded in Milwaukie, Wisconsin in 1903, and has been manufacturing motorcycles continuously since conception (Harley Davidson DVD, 2008). The company is now one of the world’s largest motorcycle manufacturers and controls 26% of all motorcycle sales in the USA, and a massive 50% of the heavyweight segment (Armstrong & Kotler, p129). The Harley Davidson name is an incredibly strong brand in the world today. Not many people in western culture could hear the name Harley Davidson and not conjure up thoughts of the powerful, throaty sounding machines carrying their riders across the country. One rider describes the feeling of freedom a Harley Davidson motorcycle inspires as having “the road to yourself” (Harley Davidson …show more content…
In addition, these events provide the organisation a unique forum to further promote their brand to this fiercely loyal group. It is these members that provide the strongest and most cost effective selling opportunity for the Harley Davidson product lines. Essentially, these are the right customers!
With such strengths as the larger-than-life brand and associated brand equity, and the army of staunchly loyal customers, it is hard to believe that this organisation would have any weaknesses. However, past performance has shown that the state of the economy (either regional or global) is one of the key threats to the ongoing profitability of the organisation. Recently, on the back of the global financial crisis, global sales of Harley Davidson products have fallen by over 40%, with a 10% drop in sales across Australia (Solomons, 2010).
With this in mind, how can a company such as Harley Davidson cushion itself against the lows in the economic environment and increase profitability across the board? Since the creation of HOG in 1983, Harley Davidson has already dramatically increased the width of its product mix (Armstrong and Kotler 2010, p210), through the release of a range of new products in a variety of different product classes. These products include apparel items such as jackets, hats and gloves, through to a range of services including roadside assistance and insurance. This has enabled Harley Davidson to capture a
Harley-Davidson, Inc. (NYSE:HOG) was founded in 1903. The home base was originally founded in and even today remains in Milwaukee Wisconsin. Harley-Davidson’s popularity grew significantly during World War I, when the U.S. infantry used 20,000 of the company’s motorcycles in its war effort (Taylor, 2010). Best recognized for its manufacturing of heavyweight motorcycles, Harley-Davidson has captured half the U.S. market and a third of the global market (Wikinvest, 2010). Harley-Davidson motorcycles are noted for their classic lines, custom paint jobs, dependability, fine craftsmanship and the Harley-Davidson signature choppy sounding engine. Most importantly, it has been
The Harley Owners Group or HOG is a factory sponsored motorcycle enthusiast club established in 1983. Its main aim was to negate the influence of outlaw bike-gangs as the face of the Harley Davidson brand and enhance the lifestyle experience of a Harley Davidson owner. This was the roadmap of the firm’s broad philosophy of getting close to the customer. There was a great need to address two main issues with respect to the brand.
The Harley Davidson brand has expanded not only in the United States but also globally, it has transformed its manufacturing, product development, and retail capabilities over
As for South America, Harley-Davidson Inc. HOG +0.31% opened a permanent Latin America headquarters, joining a growing list of U.S. companies looking to tap into the emerging market. (By Melodie Warner in Market Watch) South America has a growing economy and a huge acceptance for an icon in the motorcycle industry like Harley Davidson. In the same way Japan embraced Harley “Their economy is a fast growing luxury market” p.c11.
Historically, how did Harley‐Davidson manage to dominate the US market? How did it do so and what were its sources of competitive advantage?
Harley-Davidson's mission statement is to "fulfill dreams through the experience of motorcycling, by providing to motorcyclists and to the general public an expanding line of motorcycles and branded products and services in selected market segments." (Harley Davidson, 1999). The company's main objective for the entire organization s is to have happy and satisfied stakeholder; this includes their customers, employees, suppliers, investors, and the entire society in general. Harley-Davidson makes the customer's experience with their products the core of their business and every effort is made to make this experience as enjoyable as possible. It is this strategy that has helped Harley Davidson meet its current level of success.
Good relationships, continuous improvement, employee and management involvement, team building or employee training and empowerment are not just words out of a management book for Harley-Davidson. Only by adopting those management techniques and building a solid base between the management and the Unions/employees made it possible for Harley-Davidson to improve its management processes. While management 's responsibility is to build
The first strategy Harley-Davidson uses is customer focus. Harley-Davidson offers a wide range of products and services, from children’s’ tricycles, clothing accessories, and affordable motorcycles to more higher-ended luxury motorcycles targeting customers in all age groups. By allowing their customers to personalize and customize their motorcycles, this strategy helps build their second strategy, which is brand loyalty. Other strategies that help build brand loyalty and selling dreams are to have groups, such as the Harley Owners Group (HOG) and the Buell Riders Adventure Group (BRAG), so they can emphasize to their customers that everyone is welcome to join its large extended family for riders,. Their value is: “Tell the truth. Be fair. Keep your promises. Respect the individual. Encourage intellectual Curiosity.” (Harley-Davidson web
Celebrating their 100th anniversary next year, Harley-Davidson is a true American success story. From their modest beginnings in Milwaukee, Wisconsin to one of the most recognized company names worldwide, they have been passionate about motorcycles. Harley offers an experience like none other with the one of a kind look, feel, and sound only available on a Harley. Besides their main business of building and selling motorcycles, they have began to offer financing and insurance through Harley-Davidson Financial Services, and they also offer a full line of accessories and apparel to make the Harley experience complete.
We think it would be interesting to quote first Harley-Davidson 's mission, in order to get a first approach of what is the purpose of the company from their point of view. The mission talks first about dreams, rather than motorcycles, which is what the public has in mind. This mission says:
Since the founding of Harley-Davidson in 1903 by Arthur and Walter Davidson and William Harley, the company has a rich heritage and a loyal following. The company has proven to be resilient and innovative throughout the years. They have made their fair share of mistakes, especially while under the ownership of AMF, whose decisions almost destroyed Harley-Davidson. They have also made an inspiring come back, recapturing their share of the market and more. Harley-Davidson has managed to attract all sorts of riders including motorcycle “rebels”, women and blue and white color workers. In fact, in our church small group there are two
Historically, Harley-Davidson has managed to dominate the U.S. market by becoming a staple of American culture. Specifically, the Harley-Davidson motorcycle is considered “a part of American iconography” and is typically associated with well-known American symbols, including both the U.S. flag and the bald eagle. As a direct result of this association, the company has achieved strong and long-lasting brand loyalty among U.S. customers, which has undoubtedly contributed to its great success in the U.S. market.
The strength of Harley Davidson can be seen in its logo and product brand. In the United States, the Harley Davidson is like a cult since it has so many followers, as depicted in the case study whereby in all the rallies, hard core fans of the company, for example the Harley Owners Group was present. This gives the company a competitive advantage since it has a market that is readily available and willing to purchase its products no matter the cost. The other strength of the company as seen in the case study was in the protection by the government since it was a United States company. This helped Harley to recover when the company placed an increase on the tariffs charged on the
The success of Harley Davidson (HD) is due to the American motorcycle icon’s effective Strategic Management. HD’s vision, mission, goals and objectives strive to exceed the requirements of its main stakeholders. Although these needs are not always met, the company has unique relationships with is stakeholders. The company stays on course with its strategic plan, despite the economy and the decline of American manufacturing and what might be considered its dwindling U.S. consumer base.
Milwaukee is where it all started for Harley Davidson. In 1903, William Harley Walter and Arthur Davidson created the first of millions Harley Davidson. It was one of the two major motorcycles that were able to survive the great depression. Since 1977, the only motorcycles sold to the public under the Harley-Davidson brand have been heavyweight motorcycles, with engine displacements greater than 700 cc, designed for cruising on highways. It is one of the most well known brands in the world of motorcycles and otherwise as well. Harley-Davidson maintains an enormous brand community, which keeps active through clubs, events, and a museum. The worth of Harley Davidson brand and its logo was somewhere around $40 million which was 0.8% of the